Weekly Picks 12th February 2024

1.SBIN LTP 724

State Bank of India (SBI) a Fortune 500 company, is an Indian Multinational, Public Sector Banking and Financial services statutory body headquartered in Mumbai. The rich heritage and legacy of over 200 years, accredits SBI as the most trusted Bank by Indians through generations.

SBI, the largest Indian Bank with 1/4th market share, serves over 48 crore customers through its vast network of over 22,405 branches, 65,627 ATMs/ADWMs, 76,089 BC outlets.

Technical Outlook

^{_{(Source: Fisdom research)}}

• The counter witnessed a consolidation break-out above the 625-650 zone & scaled to “Fresh All Time” highs of 730 last week
• The counter has an immediate minor hurdle at around 740 odd levels, followed by higher positional targets of 780 & 820 levels in the mid-term time frame.
• In short-term outlook remains “Buy-On-Dip” towards 705 & 685 levels for 740 & next higher 780 odd levels.

Option Chain Study

• Derivative Option Chain data indicates “Tug-Of-War” at around 700 Strike rates. 
• Maximum CE build-up is at 650 & 700 Strike while maximum PE build-up is at 650 Strikes. Dips towards 700 & lower can provide a fresh, better risk-reward ratio for fresh trading long bets.

F&O Strategy

2.DRREDDY LTP 6152

Dr Reddy’s Laboratories Ltd products and services are spread across our core businesses of Active Pharmaceutical Ingredients (API), generics, branded generics, biosimilars and over-the-counter pharmaceutical products around the world.

Technical Outlook

^{_{(Source: Fisdom research)}}

• The counter witnessed a six-month consolidation break-out above 6000 levels & made “Fresh All Time” highs of 6216 last week.
• The counter short-term hurdles are at around 6400 & 6650 levels, followed by higher positional targets of 7000 levels in the mid-term time frame.
• In short-term outlook remains “Buy-On-Dip” towards 6000 & 5850 levels for 6400 & next higher 6650 odd levels.

Option Chain Study

• Derivative Option Chain data indicates “Tug-Of-War” at around 6000 Strike rates. 
• Maximum CE build-up is at 6200 & 6000 Strike while maximum PE build-up is at 6000 & 5500 Strikes. Dips towards 6000 & lower can provide a better risk-reward ratio for fresh trading long bets. 
• Proportionate delivery buying or Long Hedged Ratio Spread can be looked at on dips in coming weeks for potential higher targets.

F&O Strategy

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